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Re: Journal Square / New York Times: Ambitions Expand at Canco Lofts

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Quote:

jcaro28 wrote:
Canco has run out of funding to complete the project. they need to sell alot more units to complete the project. Instead of lowering prioces, they are lowering the taxes. this is alos a sign that they need every cent for completion.

they assumed that the units would sell fast and the $$$ would be there for completion. there is still demand out there...Check out Maxwell Plaxe in hoboekn and A condos downtown JC...differnce is that these developers can afford to complete the project with their own funding.

what happens to the 60 units that were sold if the remaining units are NOT sold?? Those people are screwed.

KHovanaian or Haliburton or Toll Bros...they are taking the hit, but can weather the storm.

I am not trying to be argumentative, but I honestly disagree with your logic. You seem to be saying that the proof for your assertion that Coalco has run out of money is the fact that they sought a better tax deal.

While that is possible, it is also possible that they simply sought the better tax deal to help spur sales - and the current real estate environment helped them to succeed.

As for A condos, good point. The building has been substantially complete for months (a friend of mine moved in 4 months ago) yet they are still for sale. 60 is not a great number - but if you give Canco a 4 month window from 1st move in (October?) there is still substantial time to close a few more deals.

With that said, I will not pretend to be able to see into the future. It is possible (though I think unlikely) that they will not sell another unit and the building will fail. Even if that happens, "Those people" are not screwed.

The deposit money (unlike some recent history in NJ) is not available to Canco/Coalco - it is locked up in a trust, the only thing the company has a claim against (in the case of non completion) is the interest.

Posted on: 2008/6/29 19:56

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MACALLAN

Re: Journal Square / New York Times: Ambitions Expand at Canco Lofts

Newbie

My apologies jcaro28, I must have misunderstood your previous quote:

"FYI for all those novicves out there...."

What did you mean by "novicves"?

Quote:

jcaro28 wrote:
Oh and Macellen, i never said anyone is a novice and I was NOT condesedning to any memeber...so get off your trip and get over yourself!!!!!!!

Posted on: 2008/6/29 19:30

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MACALLAN

Re: Journal Square / New York Times: Ambitions Expand at Canco Lofts

Newbie

Quote:

jcaro28 wrote:
Lipsi is a waste. He bends over for the devleopers...I wish Fulop was our councilman.

anyway...i looked at Canco...great ideas...nice space..area is not that bad...but prices are wayyyy toooo high and the mainteneice , prop tax are allso way tooo high. Lower your prices by $50,000, reduce parking fees and maybe you will sell more.

FYI for all those novicves out there....I am in real estate...when a devloper committs to a project like this...the legit ones have the financing up front...regardless of the mkt...they can afford to finish the project and whatver doesnt sell, they will rent. It obvious Coalco ran out of $$$$ and sales are horrible...so they have no $$$ to finish project. This is not a good sign!!!

I just want to thank you for bringing your real estate experience and savvy to us "novicves". If they decrease prices, it will increase demand?

What exactly makes you think Coalco has run out of money? (being a novice I am having trouble following). I was under the impression that the real estate group was a part of the broader Coal and Aluminum mining group out of Russia - not a group likely to be facing a liquidity crisis in the near term.

Also, while I am not in real estate, I would imagine sales have slowed for most condos coming on line in this market - that does not exactly mean the sky is falling...

Posted on: 2008/6/29 17:37

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